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Merry Cryptmas: Win Up to $400,000 in Metaverse Tokens & Festive Mystery Boxes!

Are you ready to enter the Cryptmas Metaverse? Join us for a Metaverse-themed Christmas and win dazzling prizes, festive Mystery Boxes and <span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; background-color: #FFFF00; font-style: italic; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap;">$400,000 in Metaverse tokens. <img src="https://public.bnbstatic.com/image/cms/blog/20211216/099da99e-86dd-4085-a63c-25502855a5d5.png" style=""/>It’s the most wonderful time of the year! We’re bringing the first-ever Metaverse-themed Christmas event as a special holiday gift from us to you—the Binance community. Let’s end this year on a high note! To make this Christmas one to remember, <a href="https://www.binance.com/en/nft" style="text-decoration-line: none;"><span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; color: #1155CC; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">Binance NFT Marketplace</a> is collaborating with <span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; background-color: #FFFF00; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap;">eight projects to launch the ‘Cryptmas Metaverse Mystery Box Collection.’ <span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; color: #202124; background-color: #FFFFFF; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap;">The collection will feature exclusive limited-edition NFTs from <span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; background-color: #FFFF00; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap;">Chromia, Enjin, GALA, Illuvium, Mines of Dalarnia, My Neighbor Alice, The Sandbox and Terra Virtua. Starting December 17, expect a wide range of exciting activities where you’ll get a chance to win Metaverse Tokens and unlock Cryptmas Metaverse Mystery Boxes. Everyone’s welcome to celebrate Christmas with us, so remember to invite your friends to participate—including non-Binance users!<h2 style="line-height:1.7999999999999998;margin-top:18pt;margin-bottom:6pt;">Official Sale of Cryptmas Metaverse Collection </h2>Starting December 24 at noon (UTC), users can purchase Cryptmas Metaverse Mystery Boxes at only 5 BUSD on the Binance NFT Marketplace. <img src="https://public.bnbstatic.com/image/cms/blog/20211216/8d7694f4-10df-4cf3-8dae-bdaf8feafe6f.png" style="white-space: normal;"/>The Mystery Boxes will come in two rarity levels – Super Rare (SR) and Super Super Rare (SSR). The SR edition consists of <span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; background-color: #FFFF00; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap;">eight different NFT designs featuring an NFT character or item from one of the <span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; background-color: #FFFF00; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap;">eight projects in the Metaverse. The SSR edition consists of only one NFT design and includes all the projects’ NFT characters/ items in the Metaverse. Each user is eligible to purchase a maximum of five Mystery Boxes from the Cryptmas Metaverse Collection. After purchase, the Mystery Boxes can also be listed and resold on Binance NFT’s <a href="https://www.binance.com/en/nft/marketplace?page=1&rows=16&order=set_end_time%401" target="_self">secondary market</a>. If you want more Cryptmas Mystery Boxes, you can buy them from the secondary market or win them by participating in the following activities.<h2 style="line-height:1.7999999999999998;margin-top:18pt;margin-bottom:6pt;">Rewards and Activities</h2>Find out how you can win your share of <span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; background-color: #FFFF00; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap;">$400,000 in Metaverse Tokens and limited edition Cryptmas Metaverse Mystery Boxes. Participate in the activities below for your chance to win. The Metaverse tokens include <span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; background-color: #FFFF00; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap;">ALICE, ENJ, ILV, GALA, TVK, CHR, DAR and SAND.<h3 style="line-height:1.38;margin-top:16pt;margin-bottom:4pt;">Binance NFT</h3><a href="https://www.binance.com/en/nft" target="_self"><img src="https://public.bnbstatic.com/image/cms/blog/20211216/b62733da-baaa-4b2e-83c4-20b6bf7be01a.png" style="white-space: normal;"/></a>From December 24 2021 9AM (UTC) to January 7 2022 9AM(UTC), collect Cryptmas Metaverse Mystery Boxes and NFTs to take home your share of <span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; background-color: #FFFF00; font-weight: 700; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap;">$120,000 in Metaverse Tokens. <ul style="padding-inline-start: 48px;" class=" list-paddingleft-2"><li>Collect at least one SSR NFT to share a prize pool of $30,000 Metaverse Tokens. Collect more SSR NFTs and win more tokens from the prize pool.</li><li>Collect four different SR NFTs to share a prize pool of $30,000 Metaverse Tokens. </li><li>Collect the full set of eight different SR NFTs to share a prize pool of $30,000 Metaverse Tokens.</li><li>The top 200 NFT traders will also share a prize pool of $30,000 Metaverse Tokens according to their trading volume.</li></ul><a href="https://www.binance.com/en/nft" target="_self"><span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; color: #1155CC; font-weight: 700; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">Discover and trade top NFTs</a><h3 style="line-height:1.38;margin-top:16pt;margin-bottom:4pt;">Fiat</h3><a href="https://www.binance.com/en/support/announcement/df7b42cb93734f4eb093dc10b7b705e0" target="_self"><img src="https://public.bnbstatic.com/image/cms/blog/20211216/70d32cc4-aa14-4627-a8db-e7748cc4d957.png" style="white-space: normal;"/></a>Ho, ho, hodl! <a href="https://www.binance.com/en/fiat/deposit/EUR" style="text-decoration-line: none;"><span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; color: #1155CC; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">Deposit fiat</a> or buy your favorite cryptocurrencies with <a href="https://www.binance.com/en/buy-sell-crypto?channel=hzBankcard" style="text-decoration-line: none;"><span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; color: #1155CC; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">credit/debit card</a> to win your share of<span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; background-color: #FFFF00; font-weight: 700; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap;"> $60,000 in Metaverse tokens (ALICE, ENJ, ILV, GALA, TVK, CHR, DAR and SAND). Get your friends to participate, and you’ll unlock an even larger prize pool! As a bonus, our Santa Elves will be rewarding the most active users with 500 Exclusive Cryptmas Metaverse Mystery Boxes. Log in and make a fiat transaction every day to accumulate points for rewards. And remember to collect the Cryptmas Mystery Box NFTs to unlock more Metaverse Tokens on <a href="https://www.binance.com/en/nft" style="text-decoration-line: none;"><span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; color: #1155CC; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">Binance NFT</a>. The sale starts on Christmas Eve!<a href="https://www.binance.com/en/support/announcement/df7b42cb93734f4eb093dc10b7b705e0" target="_self"><span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; color: #1155CC; font-weight: 700; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">Buy crypto with card or deposit fiat now! </a><h3 style="line-height:1.7999999999999998;margin-top:16pt;margin-bottom:4pt;">Spot</h3><a href="https://www.binance.com/en/support/announcement/33b49a0bdfff4eb18a00ecf682b13350" target="_self"><img src="https://public.bnbstatic.com/image/cms/blog/20211216/f85e8ae4-204c-45a7-8f50-803c9bf30ad7.png" style="white-space: normal;"/></a>“In the ten days of Cryptmas, Binance will send to me, ma~ny~ kinds~ of~ gifts!” Join the Cryptmas Preheat (Dec 17—20) and Merry Cryptmas Celebration challenges (Dec 21—25) to win your share of <span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; background-color: #FFFF00; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap;">145k+ token prizes and <span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; background-color: #FFFF00; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap;">2k Cryptmas Metaverse Mystery Boxes<span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; background-color: #FFFF00; font-weight: 400; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap;">. <a href="https://www.binance.com/en/support/announcement/33b49a0bdfff4eb18a00ecf682b13350" target="_self"><span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; background-color: #FFFF00; font-weight: 400; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; color: #1155CC; font-weight: 700; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">Win your share of tokens and Mystery Boxes</a><h3 style="line-height:1.38;margin-top:16pt;margin-bottom:4pt;">Futures </h3><a href="https://www.binance.com/en/survey/da518b0c865a40d0af0130142264c0f3?utm_source=BFutures&utm_medium=blog&utm_campaign=Cryptomas" target="_self"><img src="https://public.bnbstatic.com/image/cms/blog/20211216/5a7544ed-b34c-4f26-bd0e-f2016d2a8e2a.png" style="white-space: normal;"/></a>Celebrate Christmas with <a href="http://www.twitter.com/binancefutures" style="text-decoration-line: none;"><span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; color: #1155CC; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">Binance Futures</a> and collect your rewards from the #Metaverse! We’re joining Binance NFT to bring the biggest Metaverse celebration of the year. Stand to win up to $<span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; background-color: #FFFF00; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap;">40,000 in Metaverse tokens and 500 Cryptmas Metaverse Mystery Boxes!  <a href="https://www.binance.com/en/survey/da518b0c865a40d0af0130142264c0f3?utm_source=BFutures&utm_medium=blog&utm_campaign=Cryptomas" target="_self"><span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; color: #1155CC; font-weight: 700; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">Trade and share $40,000 rewards & 500 Mystery boxes</a><h3 style="line-height:1.38;margin-top:16pt;margin-bottom:4pt;">Margin/ Loans</h3><a href="https://www.binance.com/en/activity/challenge-competition/BN1678052124410687489" target="_self"><img src="https://public.bnbstatic.com/image/cms/blog/20211216/11ed1d7f-cf6a-4666-b22c-a5cc29da080f.png" style="white-space: normal;"/></a>Win a chance to spin our wheel [Challenge Tool] and share <span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; background-color: #FFFF00; font-weight: 400; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap;">$40,000 in Metaverse tokens and 500 NFTs! Register now, start trading and experience an unforgettable Xmas experience with <a href="https://www.binance.com/en/trade-margin/BTC_USDT" style="text-decoration-line: none;"><span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; color: #1155CC; font-weight: 400; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">Binance Margin</a> & <a href="https://www.binance.com/en/loan" style="text-decoration-line: none;"><span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; color: #1155CC; font-weight: 400; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">Loans</a> and <a href="https://www.binance.com/en/nft" style="text-decoration-line: none;"><span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; color: #1155CC; font-weight: 400; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">NFT</a>.<a href="https://www.binance.com/en/activity/challenge-competition/BN1678052124410687489" target="_self"><span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; color: #1155CC; font-weight: 700; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">Start trading now</a><h3 style="line-height:1.38;margin-top:16pt;margin-bottom:4pt;">Refer a Friend, Share The Joy & Win a Mystery Box!  </h3>Spread the love and invite your friend to participate in the event! You’ll be rewarded with a Cryptmas Metaverse Mystery Box once your referred friend completes the following tasks: <ol style="padding-inline-start: 48px;" class=" list-paddingleft-2"><li>Generate your <a href="https://www.binance.com/en/activity/referral?stopRedirectToActivity=true" style="text-decoration-line: none;"><span style="font-size: 11pt; color: #1155CC; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">unique referral link </a>and share it with your friend.</li><li>Once your friend registers a Binance account and completes any of the Cryptmas Metaverse tasks during the activity period, you will be eligible to receive a Cryptmas Metaverse Mystery Box. </li></ol>3,000 winners will be <a href="https://luckydraw.me/" style="text-decoration-line: none;"><span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; color: #1155CC; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">randomly selected</a> from all qualified users once the event concludes. The Mystery Boxes will be airdropped to winners before 2021-12-31 11:59 PM (UTC).  Winners can check their rewards via Binance NFT Marketplace > User Center > Mystery Box > Collections. <a href="https://www.binance.com/en/activity/referral?stopRedirectToActivity=true" style="text-decoration-line: none;"><span style="font-size: 11pt; font-family: "IBM Plex Sans", sans-serif; color: #1155CC; font-weight: 700; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">Invite Friends Now </a>

2021-12-17

Crypto Futures Basics: What Is Liquidation and How to Avoid It?

<h2 style="line-height:1.7999999999999998;margin-top:8pt;margin-bottom:8pt;"></h2><h2 style="line-height:1.7999999999999998;margin-top:8pt;margin-bottom:8pt;">Key Takeaways:</h2><ul style="padding-inline-start: 48px;" class=" list-paddingleft-2"><li>Leveraged positions are prone to volatile price swings, which may cause a trader’s equity to plunge into negative balance instantaneously and result in significant losses.</li><li>Liquidation mechanisms help prevent traders’ accounts from falling into negative equity.</li><li>Multiple strategies can be implemented to prevent liquidation, such as monitoring margin, using stop-losses or lowering the amount of leverage.</li></ul>Crypto derivatives have gained a lot of popularity over the years, attracting traders from all over the world to Binance Futures. Given the high volatility in the cryptocurrency market, these financial instruments can help increase traders' profits within a short period through the use of leverage. However, it is important to remember that there are also considerable risks associated with leveraged trading. One of the main factors to succeed in futures trading is strategizing each trade carefully and understanding how much capital is at risk. <img src="https://public.bnbstatic.com/image/cms/blog/20220217/26b3d64b-ca6f-462f-acdd-41a58e45c8d7.png"/>In <a href="https://www.binance.com/en/futures" target="_blank"><span style="font-size: 12pt; font-family: "IBM Plex Sans", sans-serif; color: #1155CC; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">futures trading</a>, where leverage is easily accessible, knowing how much capital and leverage is vested into a trade will help you understand your total risk exposure, because in some cases, losing trades can lead to liquidation.<h2 style="line-height:1.38;margin-top:18pt;margin-bottom:6pt;">What Is Liquidation in Crypto Futures Trades?</h2>The term liquidation is traditionally used to describe the conversion of assets into cash. But in futures trading, liquidation is something you want to avoid by all means. Leveraged positions are prone to volatile price swings, which may cause a trader’s equity to plunge into negative balance instantaneously. In such cases, losses can be more significant than the maintenance margin, leading to liquidation. This process is involuntary and automatic if a trade has come to meet specific price criteria. Liquidation can happen either slowly or quickly, depending on the amount of leverage used in a trade. For example, with lower amounts of leverage, liquidation won’t happen as soon as a minor correction occurs in the market. Nonetheless, higher amounts of leverage can deplete traders’ initial investment with little to no effort. <a href="https://www.binance.com/en/futures" target="_blank"><img src="https://public.bnbstatic.com/image/cms/blog/20220217/d02ccaf4-da5b-4089-9362-ae53864d68dd.png"/></a> <h2 style="line-height:1.7999999999999998;margin-top:8pt;margin-bottom:8pt;">When Would Liquidation Occur?</h2>A forced <a href="https://www.binance.com/en/support/faq/7ba80e1b406f40a0a140a84b3a10c387" target="_blank"><span style="font-size: 12pt; font-family: "IBM Plex Sans", sans-serif; color: #1155CC; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">liquidation</a> process happens when a trader can no longer meet the margin requirements of their leveraged position.Let’s say you were to open a long BTC/BUSD leveraged position with $100 as your account balance. You used 20x leverage to enter a trade worth $2,000. If the price of BTC were to drop by only 5%, your account balance would be wiped out as you can no longer fulfill the margin call demands to keep the trade afloat. This is what is called liquidation in futures trading.<img src="https://public.bnbstatic.com/image/cms/blog/20220217/519c1f57-872d-49f7-9840-ef9faaf8b3ee.png"/>Although this is a basic example, it is crucial to know your limits and how much you’re willing to lose on a trade to understand how much leverage you should use. Binance Futures has introduced leverage limits on new accounts to protect users from the dangers and unintended consequences of using high leverage. It is imperative to fully understand the impact of leverage and the circumstances under which it can significantly damage the probability of a profitable trade. Read more about <a href="https://www.binance.com/en/support/faq/25edcd7fe0e544839d0847b8cbb2e400" target="_blank"><span style="font-size: 12pt; font-family: "IBM Plex Sans", sans-serif; color: #1155CC; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">how to reduce your chances of liquidation</a>. <h2 style="line-height:1.7999999999999998;margin-top:8pt;margin-bottom:8pt;">Quick Tips to Prevent Liquidation</h2>To remain on the safe side, traders must have a plan in place with planned exits before entering any trade. There are multiple strategies that can be implemented to avoid risks, but you should consider the following to avoid liquidation. <h3 style="line-height:1.38;margin-top:16pt;margin-bottom:4pt;">1. Use Stop-Loss Orders </h3>The most obvious answer to avoid liquidation is simply using a stop loss. A stop loss is a trading tool Binance Futures offers, which allows traders to set a price to automatically exit a trade should the price of an asset hit this predetermined level. Using a stop loss in conjunction with a <span style="font-size: 12pt; font-family: "IBM Plex Sans", sans-serif; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">liquidation calculator,  can help protect a trader’s account from incurring significant losses, and especially from liquidation.Although you may still lose some funds, the stop loss tool will protect you from losing everything on a trade and from having to pay liquidation fees. Besides, who wants to lose and get penalized for it? By using a stop-loss, you can prevent this from happening. <h3 style="line-height:1.7999999999999998;margin-top:8pt;margin-bottom:8pt;"><span style="font-size: 14pt; font-family: "IBM Plex Sans", sans-serif; color: #434343; font-weight: 400; font-variant-numeric: normal; font-variant-east-asian: normal; vertical-align: baseline; white-space: pre-wrap;">2. Decrease the Amount of Leverage</h3>Leverage has a significant impact on the longevity of a trade. While it may be enticing to use large amounts of leverage, it could also magnify your losses.As shown in the example above, the high amount of leverage can hurt a trader even when a small price change occurs. Thus, using lower leverage will help you navigate a volatile crypto market smoothly and safely. <h3 style="line-height:1.7999999999999998;margin-top:8pt;margin-bottom:8pt;">3. Monitor the Margin Ratio</h3>Another option that traders can implement is monitoring the <a href="https://www.binance.com/en/support/faq/360033162192" target="_blank"><span style="font-size: 12pt; font-family: "IBM Plex Sans", sans-serif; color: #1155CC; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">margin ratio</a>. When the margin ratio hits 100%, the position will be liquidated. To avoid this outcome, traders can add more margin to their trade to return leverage and reduce their position). This method is akin to keeping a position alive when the trade is heading further in the wrong direction. Adding more margin or reducing leverage is similar to starting with less leverage in the first place. The difference is that maintaining a specific margin ratio can be done over more extended periods and is a dynamic solution.<img src="https://public.bnbstatic.com/image/cms/blog/20220217/34515a68-7d02-4612-ad4e-7ab3835e1c0d.png"/><h2 style="line-height:1.38;margin-top:18pt;margin-bottom:6pt;">In Summary</h2>Liquidation is a scary word that traders would much prefer to avoid if possible. The good news is that traders have several tools and trading strategies that they can implement to avoid being liquidated. From stop losses to monitoring the margin ratio, traders have multiple resources to avoid liquidation. If you think you might want to learn more about trading, Binance Futures offers everything a trader may need to trade responsibly, like the <a href="https://academy.binance.com/en/articles/the-ultimate-guide-to-trading-on-binance-futures" target="_blank"><span style="font-size: 12pt; font-family: "IBM Plex Sans", sans-serif; color: #1155CC; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">Ultimate Guide to Trading on Binance Futures</a>. Additionally, the platform offers incredibly competitive rates, fees, and multiple financial instruments for traders. Read the following support items for more information about trading futures:<ul style="padding-inline-start: 48px;" class=" list-paddingleft-2"><li><a href="https://www.binance.com/en/support/faq/360040016512" target="_blank"><span style="font-size: 12pt; color: #1155CC; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">(Support) How to Place Stop Loss Order and Take Profit Order</a></li><li><a href="https://www.binance.com/en/blog/futures/how-binance-takes-responsible-trading-seriously-and-you-should-too-421499824684900595" target="_blank"><span style="font-size: 12pt; color: #1155CC; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">(Blog) How Binance Takes Responsible Trading Seriously, and You Should Too</a></li><li><a href="https://www.binance.com/en/support/faq/360033525271" target="_blank"><span style="font-size: 12pt; color: #1155CC; background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;">(Support) Liquidation Protocol</a></li><li>And many more<a href="https://www.binance.com/en/support/faq/c-4?navId=18#/4/18" target="_blank"><span style="font-size: 12pt; color: #1155CC; background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;"> Binance Futures FAQ</a> topics...</li></ul> <a href="https://www.binance.com/en/futures" target="_blank"><img src="https://public.bnbstatic.com/image/cms/blog/20220217/bed23269-840f-42bf-a51f-0e60b500a45b.png"/></a>

2021-08-02

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